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Yes! And he should be an independent evil sea creature with a whole following of lesser water creatures under his rule. In the movie, he would work for Skeletor realising that Skeletor is more powerfull but should maintain relative sovereinty under the sea.

Definitely, he's a classic henchman and is generally well know. My wife (who isnt a real fan) remembers him alongside Evil Lyn and Beastman but has no recollection of guys like Trapjaw of Clawful, etc, etc.

Anyone that doubts his popularity and significance...wasn't he the first of the Neca busts sculpted for the 200X re-launch ?
OG villain, definitely. He was the Neptune/Poseidon character from back in the day when MOTU had some mythological elements and he was the Evil Master of his domain.

Yes, outside the waters or oceans and all that he is not much of a threat unless he is kicking your but with his coral sword or trident. in the ocean he will rule you. with a capital R. being able to control fierce monsters of the deep to suit his purpose to suit his own needs. all things under water are all jim dandy until that giant winged whale piranha just came out of no where and bit your arm off. he is Skeletors element of the sea. do not let him slip by like a bar of soap in someones hands.

Men who crave power, look back on all their mistakes, pile them all together and call it destiny.- Sorceress

Mer-Man would be cool if he was an independent villan who still answers to Skeletor. An Ocean warlord who has sea creatures fighting under him. I wouldn't like him to be included if he was bumbling and incompetent.

I totally agree, it's reinventing the property in a good and smart way.

I think for the film to succeed it needs to be built around a great story. Trying to build a story around a huge ensemble cast could only end in disappointment. I voted yes simply because I love Mer-Man but if it would add unnecessary baggage to the story I'd just as quickly say no. It would be cool if the story involved our heroes crossing a sea or some other scenario where he really had a chance to shine. If he was just one of Skeletor's lackeys that just happened to be a merman with no real purpose I'd see it as a detriment to the story. For example a showdown with Mer-Man in the desert would be absurdly stupid. Likewise I don't want to see a set piece that was clearly built to shoehorn an extra character into the story.